Mumbai: Assicurazioni Generali SpA will buy a 25% stake in an Indian general insurance company from its joint-venture partner Future Group as the embattled conglomerate seeks to raise cash to pay back debt.
Future Enterprises Ltd. agreed to sell the stake in Future Generali India Insurance Co. to a subsidiary of the Italian insurer for 12.5 billion rupees ($166 million), plus an additional consideration that is linked to the date of the deal closing, it said in an exchange filing.
The stake sale – which will give Generali majority control over the venture – comes as the Future Group is locked in a prolonged legal battle with partner Amazon.com Inc. over a $3.3 billion asset sale to rival Reliance Industries Ltd. Earlier this week, group firm Future Retail Ltd. said it will be late in making a bond coupon payment.
Future Enterprises has received offers from potential buyers for its remaining 24.91% stake, while Generali has also acquired an option to buy out the company’s remaining interest in the venture, according to the statement.
Separately, Future is also exploring options for the sale of its 33.3% interest in its life insurance joint venture, it said. Future expects to complete the exit of its holding in the two insurance joint ventures in a “time bound manner,” it said. –Bloomberg